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Lands in Entrecampos, in Lisbon, Head Public Auction with Base Value of €188 Million

19 July 2018

The initiative was approved with favourable votes by the PS and PSD. The CDS-PP voted against, while the BE and PCP abstained from voting.

This Thursday, Lisbon’s City Council approved the divestiture of two parcels of land and two lots in the Entrecampos area, with a base bidding value of 188.4 million euros.

The proposal aims to “approve and submit to the appreciation of the City Council the sale in public auction of two lots and two parcels of land for construction, as a part of the Combined Operation for Entrecampos.” The areas include the Flea Market (Feira Popular) and the zone connecting the avenues 5 de Outubro and Forças Armadas.

Sources at the municipality told Lusa that the document was approved with favourable votes by the PS and PSD, while the CDS-PP voted against the measure and the BE and PCP abstained.

Last time that the council attempted to sell the grounds of the former Flea Market, in 2015, it stipulated a base value of 135.7 million euros. That has now been raised to €160.5 million, accounting for the two parcels of land and the two lots.

The document approved today, which the Lusa agency was able to view, states that the two lots are located on the grounds of the former Flea Market, as well as one of the parcels, which is intended “for the construction of a public car park and a facility to support urban logistics.” The other parcel is located on the Avenida Alvaro Pais and will be used for services.

The values ​​for each area vary between 27.9 million and 67.1 million euros, and it will be up to the municipal executive “to determine the best moment for each of these public auctions” and whether they will be held at the same time or separately, the proposal signed by the Urban Planning councillor, Manuel Salgado, reads.

The proposal points out that “all the lots and parcels of land are strictly defined by the urban development conditions to which any construction on them will be subject,” and that the one-off income resulting from the sale of the land will “strengthen the municipality’s investment capacity in the fulfilment of obligations “that assumed in this project, in particular, the construction of 700 homes with affordable rents.”

“In this combined operation, the City Council will be responsible for carrying out the development works, including the opening of a new street and the rehabilitation of existing ones, the creation of green areas, the construction and rehabilitation of affordable housing, as well as social-use facilities, and may award to third parties, in surface law, the construction and operation of the public car park beneath the Av. 5 de Outubro,” the text reads.

Speaking to the Lusa news agency, city councillor João Pedro Costa (PSD) pointed out that there is a “big difference” between this proposal and earlier public auctions since that have since become vacant. “The lands are ready for construction and therefore more,” he added, stating “that the auction is expected to be more successful.”

João Gonçalves Pereira, of the CDS-PP, reiterated that he has “serious reservations” regarding the project, from “the point of view of compliance with the law, the PDM [Municipal Directorial Plan], and municipal regulations, for the former Flea Market.”

Also, in statements to Lusa, council member Ricardo Robles for the Left Block (who has a city governance agreement signed with the PS after the last local elections), said there was a “substantial difference between the public auction in 2015 and the current one.” “Before it was simply the sale, and now we are planning a major transformation of the city, for the good of Lisbon,” he said.

For the PCP, Lisbon “lost an excellent opportunity to remake the city, not for the real estate industry, but for the people of Lisbon.” Still, city council member Ana Jara highlighted the construction of affordable housing and advocated that the council should do its part “at the same time as the private sector carries out” the project.

Original Story: Jornal Expresso / Lusa

Translation: Richard Turner